The Adverse Economic Consequences of Extremely High Capital-Wealth Inequality

Capital wealth taxation as a potential remedy for excessive capital wealth inequality

“…Wolff (1987;1994), on the basis of careful analysis of microdata provided by the various Federal reserve Board surveys of wealth and income, finds evidence of significant increases in inequality with respect to both total wealth and financial capital wealth in the united States since the early 1960s. This trend is viewed as generally unhealthy in terms of social solidarity and democratic ideals by commentators such as Bartels (2008), Keister (2000), Smith (2001), and Wolff (1995).…”

“…The inheritance and chance (IC) model utilized in this research is a simplification of the model developed by Yunker (1998-99). although considerably simplified, the model is still capable of generating very high levels of capital wealth inequality.…”

“…When this happens, w e is set to zero. Yunker (1998-99) differentiates between "homogeneous" random variation and "heterogeneous" random variation. In the homogeneous case, expected rate of growth r\ and standard deviation of growth rate s are parametric constants invariant over all wealth levels.…”

Economic inequality and optimal redistribution: A theoretical and empirical analysis

“…Over the last few decades, a number of economists and socio-political analysts have expressed concern over the high and increasing level of economic inequality: Atkinson (1972), Thurow (1975), Levy (1987), Packard (1989), Winnick (1989), Dagum and Zenga (1990), Maxwell (1990), Inhaber and Carroll (1991), Levy and Michel (1991), Toshiyuki (1991), Osberg (1991), Frank and Cook (1995), Wolff (1995), Yunker (1997), Keister (2000), Arrow, Bowles, and Durlauf (2000), Smith (2001), Welch (2001), Bartels (2008), Rycroft (2009), Kennickell (2009). A notable contribution to this literature was recently added by the Nobel prize-winning economist Joseph E. Stiglitz: The Price of Inequality: How Today's Divided Society Endangers Our Future (2012).…”

The Basic Income Guarantee: A General Equilibrium Evaluation

“…The author has previously utilized a number of variants of this particular model, some of them involving an expansion to incorporate a third primary factor (designated capital management effort e) provided by the household, to examine a number of issues in taxation, distribution, and economic systems: Yunker (1989Yunker ( , 1991Yunker ( , 1993Yunker ( , 1994Yunker ( , 1997Yunker ( , 1999Yunker ( , 2004Yunker ( , 2007Yunker ( , 2014. For extended discussion of the theoretical components of the model, see Yunker (2004, Chapter 2).…”